Responding To The Ethical and Social Environment: Chapter Summary

CHAPTER 4
Responding to the Ethical and Social

Environment
CHAPTER SUMMARY
This chapter explores the ethical and social context of management. The basic topics of discussion
include ethics and ethical issues, the nature of social responsibility, the relationship between organizations
and governments, and the management of social responsibility.
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Discuss managerial ethics, three areas of special ethical concern for managers, and how
organizations manage ethical behavior.
2. Identify and summarize key emerging ethical issues in organizations today.
3. Discuss the concept of social responsibility, specify to whom or what an organization might be
considered responsible, and describe four types of organizational approaches to social responsibility.
4. Explain the relationship between the government and organizations regarding social responsibility.
5. Describe some of the activities that organizations may engage in to manage social responsibility.
MANAGEMENT IN ACTION
Management by Objectionable Behavior
The opening case concerns American Apparel and the attempted ouster of their founder and CEO Dov
Charney for misconduct. At the time of the attempted ouster, the company had not posted a profit in four
years. The board cited Charney’s sexual misconduct, and the resulting lawsuits, as the main reason for
financial trouble. Charney refused to resign from the company he founded.
Management Update: American Apparel finally ousted Dov Charney in December of
2014. Charney promptly filed over two dozen lawsuits against the company. American
Apparel named Paula Schneider as the new CEO and began a $30 million cost-cutting
program. They hold a restraining order on Charney, preventing him from making
negative comments to the press.
LECTURE OUTLINE
I. INDIVIDUAL ETHICS IN ORGANIZATIONS
Ethics are an individual’s personal beliefs regarding right and wrong behavior.
The authors define ethics in the context of the individual. People have ethics; organizations do not.
Ethical behavior varies from one person to another.
Ethical behavior is behavior that conforms to generally accepted social norms.
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Management 12e by Ricky W. Griffin
Unethical behavior is behavior that does not conform to generally accepted social norms.
Many factors contribute to an individual’s ethics: family, peers, individual events, values and
morals.
Cross-Reference: Note that ethical and social responsibility issues are reflected in the
sociocultural dimension of an organization’s general environment, discussed in Chapter 3.
Discussion Starter: A debate in some business programs is the extent to which colleges
can teach ethics. Some experts believe that ethics can indeed be taught, whereas other
experts believe that ethics are formed early and thus cannot be taught. Students views?
A. Managerial Ethics
Interesting Quote: “Moral character is shaped by family, church, and education long
before an individual joins a company to make a living.” (Kenneth R. Andrews, Harvard
Business Review, October 1989, 99.)
Managerial ethics are standards for behavior that guide individual managers in their work.
1. How an organization treats its employees
Managers’ ethical standards with respect to hiring, firing, wages, and working conditions
must be high when dealing with employees.
Discussion Starter: Ask students to provide examples in which an organization they
worked for treated them in an ethical or an unethical fashion.
Teaching Tip: Note that as organizations enter a period of cutbacks and downsizing, the
potential for unethical treatment of employees tends to increase.
2. How employees treat the organization
The ethical standards of an individual may conflict with the organization’s policies with
respect to interest, secrecy, honesty, and expense accounts.
Discussion Starter: Note that many corporate scandals, such as those at Tyco, Enron and
WorldCom, are allegedly cases of individual misdeeds in defiance of corporate policies.
Ask students whether they believe an organization can distance itself from the actions of
its workers or whether the organization must somehow be responsible for creating an
environment in which unethical conduct can occur. Consider the opening case and
American Apparel attempting to distance itself from Dov Charney.
3. How employees and the organizations treat other economic agents
Managers also must have high ethical standards when dealing with customers,
competitors, stockholders, suppliers, dealers, and unions. It is important for managers to
supply truthful, clear communications with these economic agents in order to behave
ethically.
Discussion Starter: Again, solicit student experiences regarding their treatment of
another organization and/or the treatment of their employer toward another organization.
Global Connection: The U. S. is not alone dealing with ethical scandals. Scandals have
plagued Japan in recent years. In one instance, several large investment houses were
charged with providing illegal kickbacks to major clients to cover their investment losses.
B. Ethics in an Organizational Context
Chapter 4: Responding to the Ethical and Social Environment
Unethical behavior occurs most often in an organizational context that is conducive to such
behavior. Actions of peers, top managers, and the organization’s culture, all contribute to the
ethical context of the organization. Employees who work for firms that support and encourage
unethical acts, though they are in the best interests of the firm, may find themselves in a
conflict-of-interest situation.
Discussion Starter: Ask students their opinion of the comment made by Wallner, a
Hypercom executive, regarding a manager who is apparently committing unethical
actions: “He [is] bringing in $70 million a year. Do you fire your number one rock star
because he’s difficult?” Do the students agree? Why or why not?
C. Managing Ethical Behavior
Top managers are responsible for setting the ethical standards for an organization. Committees
can be formed to investigate possible unethical activities internally, and employees can attend
training sessions to learn to act more ethically when faced with certain situations.
1. Creating Ethics Codes
A code of ethics is a formal written statement of the values and ethical standards that
guide the firm’s actions. Firms must adhere to the code if it is to be of any value.
Teaching Tip: If your school has a code of ethical conduct for students, it might be
interesting to discuss it here. Note, for example, the similarities and differences that
might exist between a university code and a business code.
Extra Example: Codes of ethics at: Motorola, Coca-Cola, and Texas Instruments.
Group Exercise: Ask students to identify what common themes and ideas are likely to
be reflected in all corporate codes of ethics.
2. Applying Moral Judgment
Experts suggest managers follow the three-step model when applying ethical judgment to
business situations.
a. Gather the relevant factual information,
b. Determine the most appropriate moral values, and
c. Make an ethical judgment based on the rightness or wrongness of the proposed
activity or policy.
Other principles that come into play include various ethical norms, including utility,
rights, justice, and caring. Utility asks whether the act optimizes outcomes for
constituencies. Rights is concerned with whether an act respects the rights of the
individuals involved. Justice means consistent and fair. Caring considers whether an act
is consistent with people’s responsibilities to each other.
3. Maintaining Organizational Justice
Organizational justice refers to the perceptions of people in an organization regarding
fairness.
The four basic forms of organizational justice are: distributive; procedural; interpersonal;
and informational.
Distributive justice is people’s perceptions of the fairness with which rewards are
distributed within the organization.
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Procedural justice are individual perceptions of the fairness used to determine various
outcomes.
Interpersonal justice relates to the degree of fairness people see in how they are treated
by others in their organization.’
Informational justice refers to the perceived fairness of information used to arrive at
decisions.
II. EMERGING ETHICAL ISSUES IN ORGANIZATIONS
A. Ethical Leadership
1. Leaders set the ethical tone for the organization.
2. The Sarbanes-Oxley Act of 2002 requires top managers to personally vouch for the
truthfulness of their firm’s financial disclosures and imposes significant penalties for
violations.
B. Ethical Issues in Corporate Governance

To provide adequate corporate governance, boards of directors must be independent of
management influence, as well as familiar with the firm and its industry.
C. Ethical Issues in Information Technology
Online privacy is an important emerging area of ethical concern.
III. SOCIAL RESPONSIBILITY AND ORGANIZATIONS
Social responsibility is the set of obligations an organization assumes to protect and enhance the
society in which it functions.
A. Areas of Social Responsibility
1. Organizational stakeholders—people and organizations that are directly affected by the
practices of an organization and that have a stake in its performance. Figure 4.3 names all
of the various constituents.
Most companies concentrate on three main groups: customers, employees, and investors.
They then select other relevant or important stakeholders and attempt to address their
needs.
Cross-Reference: Note the similarities between the concept of constituents and that of
task environments as discussed in Chapter 3.
Group Exercise: Have students develop a “map” similar to Figure 4.3 showing the
constituents of an organization, such as your college or university, a local business, etc.
2. The natural environment—Laws now regulate how far a company can go with respect to
the natural environment. Previously, companies dumped sewage, waste products, and
trash anywhere they could. Although many of the problems have been reduced or
eliminated, there are still major problems facing the natural environment.
Global Connection: Note that environmental concerns are greater in some countries than
they are in the United States. Germany, for example, has very strict environmental
protection laws. Other countries concerns for the environment are given low priority.
The clearing of the rain forests in the Amazon basin is one significant example. Another
is the continued destruction of animals facing extinction in parts of Africa.
Extra Example: Organizations with significant commitment to the natural environment

are discovering an unusual strategy—lobbying the government for stricter regulation.
Examples include Honda, which makes an efficient and clean solar-electric car, and
Stoneyfield Farm, the nation’s largest maker of pesticide-free organic yogurt.
3. General social welfare—Organizations also can promote the general social welfare by
contributing to charities, philanthropic organizations, and not-for-profit foundations and
associations, among other ways.
B. Arguments For and Against Social Responsibility

1. Arguments for social responsibility—There are four main reasons to support social
responsibility:
a) Businesses create problems and therefore should be responsible for solving them.
b) Corporations are citizens in our society, too, and should not avoid their obligations
as citizens.
c) Businesses have the resources to help.
d) Businesses can profit from social responsibility if consumers are aware of their
efforts. (Businesses can also lose profits if they are not socially responsible.)
Discussion Starter: Ask students to help identify specific examples of how socially
responsible behavior has had a positive impact.
2. Arguments against social responsibility—There are also four reasons often given against
social responsibility:
a) Businesses should simply focus on making a profit.
b) Involvement in social programs gives businesses too much power.
c) There is a potential for conflict of interest.
d) Organizations lack the expertise to understand how to assess and make decisions
about worthy social programs.
Discussion Starter: Ask students to help identify examples of how socially responsible
behavior may have negative effects.
Discussion Starter: Ask students for their thoughts and opinions regarding the relative
merits of the arguments for and against social responsibility. This can also be set up as a
debate exercise with different teams arguing for and against social responsibility.
C. Organizational Approaches to Social Responsibility
Firms can adopt a number of different stances regarding social responsibility.
1. Obstructionist stance—describes firms who do as little as possible in the social
responsibility arena. If cited for unethical behavior, they deny it, cover it up, or try to
hide it.
2. Defensive stance—describes firms who do only what is legally required and nothing
more.
3. Accommodative stance—describes firms who not only do what is required by law, but
on selected issues will do more.
4. Proactive stance—describes firms who do far more than is legally required in all
situations. They view themselves as a citizen in the society.
Teaching Tip: Be sure to stress that these four approaches represent points along a
continuum, as shown in Figure 4.5. Thus, there are often fine gradations between
different approaches to social responsibility.
Discussion Starter: Ask students to help identify other examples to illustrate each of the
four approaches to social responsibility.
Teaching Tip: Note the relationship between the four approaches to social responsibility
and the arguments for and against social responsibility. For example, a firm whose
managers strongly oppose social responsibility will be more likely to take an
obstructionist or a defensive approach, whereas a firm whose managers endorse social
responsibility will be more likely to take an accommodative or a proactive approach.
Teaching Tip: Stress the point that an organization’s approach to social responsibility
may be inconsistent and/or contradictory.
IV. THE GOVERNMENT AND SOCIAL RESPONSIBILITY
A. How Government Influences Organizations

1. Direct regulation—the establishment of laws and rules that dictate what businesses can
and cannot do in prescribed areas
Teaching Tip: Describe how your local community regulates business through its zoning
procedures. If relevant, describe a recent controversial zoning decision.
2. Indirect regulation—finding ways to influence firms to act in a socially responsible way
without direct laws
One way is to change the tax structure of organizations to make business act in a way
that the government thinks is socially acceptable.
B. How Organizations Influence Government
1. Personal contacts—relationships between business leaders and political leaders can be
used by businesses to present their cases or positions.
2. Lobbying—the use of a formal representative, by either a single organization or a group
of organizations, before political bodies on behalf of the organization or organizations.
Extra Example: Organizations that rely heavily on lobbying differ widely on issues and
political stances. For example, one website listed these organizations as the most
powerful lobbying groups in Washington (in descending order): the American
Association of Retired Persons, the National Federation of Independent Business (small-
business owners), the American Israel Public Affair Committee, the NRA, and AFL-CIO.
3. Political action committees (PACs) —special organizations created to solicit money
and then distribute it to political candidates.
Extra Example: In the 2012 presidential election year, prominent PACs included the
American Federation of Teachers, a labor union, and the American Medical Association.
4. Favors—Organizations sometimes rely on favors and other influence tactics to gain
support. The favors vary widely, such as offering free airline travel on corporate jets.
Interesting Quote: “You just tend to listen more carefully to people who are helping you
stay in office than to people who are not or are trying to harm you.” Representative Rick
Lazio, a Republican from New York, quoted in Speaking Freely, 2nd Ed., by Larry
Makinson (Center for Responsive Politics, 2003).
V. MANAGING SOCIAL RESPONSIBILITY
A. Formal Organizational Dimensions

1. Legal compliance—the extent to which the organization complies with local, state,
federal, and international laws
2. Ethical compliance—the extent to which the firm and its members follow basic ethical
standards of behavior
3. Philanthropic giving—the awarding of funds or other gifts to charities or other social
programs
Global Connection: As noted, international businesses have become frequent
contributors in different countries where they do business. For example, UPS supports
national Olympic teams in dozens of different countries.
B. Informal Organizational Dimensions
1. Organization leadership and culture—The basic culture and leadership practices of an
organization can define the social responsibility stance adopted by an organization and
its members.
Extra Example: Dave Thomas, former CEO of Wendy’s, gave millions of dollars to
help needy children. He also donated large amounts of his time to help them learn to read
and to provide adoption assistance.
2. Whistle blowing—occurs when an employee discloses illegal or unethical conduct by
others within the organization.
Discussion Starter: Several recent corporate scandals, including Enron’s, have been
disclosed by whistle blowers. Ask students whether they agree that women tend to be
more ethical than men.
Discussion Starter: Solicit student opinions regarding whistle-blowing. In particular, ask

how many of them would “blow the whistle” themselves if it meant the loss of a job.
Extra Example: A popular 1999 movie entitled The Insider (starring Russell Crowe and
Al Pacino) tells of a research scientist employed by a tobacco firm who loses his job and
is threatened for telling the truth about the health dangers of smoking. The movie was
based on the true story of whistle blower Jeffrey Wigand, who was fired from cigarette
maker Brown & Williamson in 1993.
C. Evaluating Social Responsibility
To evaluate a firm’s social performance, an organization can conduct a corporate social
audit. This is a formal and thorough analysis of the effectiveness of the firm’s social
performance.
END OF CHAPTER QUESTIONS
Questions for Review

1. Define ethical and unethical behavior. Give three specific examples of ethical behavior and
three specific examples of unethical behavior.
Ethical behavior conforms to generally accepted social norms, while unethical behavior does not.
Ethical behavior would include actions such as accepting responsibility for mistakes, telling the
truth, and putting the needs of others ahead of one’s own needs. Unethical behavior includes
stealing, lying, and winning by cheating. Point out to students, however, that ethics are dependent,
by definition, on society’s norms. Ethics are also relative for most individuals. For example, lying
may be justified if the lie is a “white lie” told to spare a friend’s feelings.
2. Summarize the basic stances that an organization can take regarding social responsibility.
The four stances, in order of increasing positive social responsibility, are the obstructionist, the
defensive, the accommodative, and the proactive.
3. Who are the important stakeholders of your college or university? What does each
stakeholder group get from the school? What does each give to the school?
Stakeholders at most universities would include students, students’ families, professors, staff, unions
that represent employees, the school’s ruling body (a state, a church, etc.), regulatory agencies,
creditors, and suppliers. For example, students contribute money; their effort, creativity and loyalty;
and feedback to their school. In exchange, they expect items such as educational services, value for
their money, a diploma, and help in finding employment.
4. Describe the formal and informal dimensions of social responsibility.
Formal dimensions of social responsibility include legal compliance—adherence to laws; ethical
compliance—adherence to ethical standards of behavior; and philanthropic giving—voluntary
contributions to causes and organizations that benefit society. The informal dimensions are
organization leadership and culture—a role model set at the highest levels of the organization, and
whistle-blowing—public disclosure of an organization’s unethical actions.
Questions for Analysis

5. What is the relationship between the law and ethical behavior? Can illegal behavior possibly
be ethical?
Organizations can act legally but not ethically. Individuals can act in what they feel is an ethical
manner while also breaking the law. Some individuals try to block abortion clinics in an effort to
stop actions that they believe are harmful. In their eyes, these protests are ethical, but to the police,
who may arrest them for trespassing, the protests are illegal.
6. Where do organizational ethics come from? Describe the contributions made by the
organization’s founder, managers, and workers as well as laws and social norms. Which do
you think is most influential? Why?
An organization’s founder sets the tone for the organization’s ethics, just as they establish the
foundation of many other areas of culture. Managers, by their behavior, serve as role models for
employees. Managers can also create policies or practices that impact ethics. Workers, by their
compliance, either support or undermine the ethical or unethical actions of others. Students will
have various opinions about the impact of each of these groups on ethics. A founder establishes the
initial ethical position of the firm, which can endure for a long time. Managers are also influential,
as policy makers and role models. Workers, because they are carrying out the activities of the
organization, can have a very significant impact too.
7. There are many worthy causes or programs that deserve support from socially responsible
companies. In your opinion, which types of causes or programs are the most deserving?
Explain your reasoning.
Students will have a variety of responses. Some may prefer that companies spend money on causes
that directly support the work or mission of the organization. The students might suggest welfare-to-
work or educational programs. Others may prefer causes that support the neediest, and they may
suggest programs that target the homeless, children, or the terminally ill. Another viewpoint would
suggest that organizations should support charities that provide maximum public relations exposure
for the firm. These companies would contribute to charities supported by wealthy and prominent
individuals or popular causes such as parks or free concerts. Yet another position is that companies
should use their charitable contributions to “undo” some of the negative outcomes of their business.
These companies might contribute to recycling, environmental clean-up, or anti-poverty programs in
areas where they laid off employees.
Questions for Application

8. In the last several years a number of corporate scandals have been brought to light. Many
organizations have responded by, for example, appointing a chief ethics officer, beginning an
ethics training program for workers, writing a formal code of ethics, or setting up a hotline for
whistleblowers. In your opinion, are these measures likely to increase organizational ethics in
the long run? If so, why? If not, what would be effective in improving organizational ethics?
Students will readily see the difference between “talking the talk” and “walking the walk.” These
programs can be effective if they are part of an organization-wide commitment to real change. In
isolation, or if not supported by top management, or if not consistently implemented, even the best-
conceived change will not be effective in the long-run. Other ideas for improvements could range
from firing employees who commit ethical violations to funding ethics education courses at the
local university.
9. Review the arguments for and against social responsibility. On a scale of 1 to 10, rate the
validity and importance of each point. Use these ratings to develop a position regarding how
socially responsible an organization should be. Now compare your ratings and position with
those of two of your classmates. Discuss your respective positions, focusing primarily on
disagreements.
Each of the arguments should be given a value from one to ten. Based on the ratings, students
should be able to develop positions about how socially responsible firms should be. Because the
ratings depend on each student’s individual values and feelings, ratings should differ from student to
student. The comparison portion of this question will provide an opportunity for these differences to
surface. The results from the discussion of the disagreements can be shared with the class.
10. Give three specific examples of a way in which the government has influenced an organization.
Then give three specific examples of a way in which an organization has influenced the
government. Do you think the government’s actions were ethical? Were the company’s actions
ethical? Why or why not?
A sample answer could be: “OSHA regularly inspects the plants at Ford Motors to ensure worker
safety. The IRS collects taxes from Ford Motors. The SEC ensures that shares of Ford Motors are
sold in an ethical manner and that the company accurately reports its financial position to
shareholders. Ford Motors lobbies the federal government for a reduction in pollution control
requirements for automobiles. They contributed $4.5 million to lobbyist groups in 2014. (Source:
http://www.opensecrets.org./ ) Ford cooperated in providing data to the National Highway Traffic
Safety Administration as they investigated crashes related to the failure of Firestone tires installed
on Ford SUVs.” Of course, students will have differing opinions about the ethics of each of these
items.
END OF CHAPTER EXERCISES
Building Effective Diagnostic and Decision-Making Skills

I. Purpose
This exercise aids students in developing their diagnostic and decision-making skills in relation to
an ethical business dilemma, focusing on the dilemmas posed by the online publication of music.
II. Format
This out-of-class exercise could be effective as an individual or as a small-group task, and it should
require about 20 minutes to complete.
III. Follow-Up
A. Start by considering each of the stakeholders in the online music publishing industry—
recording artists, recording companies, online file-sharing companies such as Napster, and
consumers. Consider the kinds of ethical problems faced by the industry, and explain how
each stakeholder is affected by each problem.
Students will see that each of the stakeholders has a different viewpoint on the ethical
problems in the music industry. Artists, for example, want to obtain fair royalties for their
creative works, but they also want their music to have broad public exposure. Consumers, on
the other hand, want convenient and inexpensive access to music, and they don’t want to lose
their “right” to free exchange of files over the Internet.
B. For each problem, determine the best outcome for each stakeholder.
The “best” outcome depends on how the ethical problem is defined for each stakeholder.
C. For each problem, do you see any way to satisfy the needs of every stakeholder? If yes,
explain how this outcome can be brought about. If no, explain why no mutually beneficial
solution is possible.
Although the needs of differing parties may seem to conflict, there may be an opportunity for
satisfying most or all stakeholders. For example, recording companies want profit and
consumers want low costs. Yet the recording companies can profit just as much by selling
more of less costly items as they can by selling fewer, more expensive items.
D. In what ways did your own code of ethics influence your various answers to question 2 and
your reasoning in question 3?
Students should recognize that their personal ethics will always effect their approach to
solving ethical dilemmas. In this exercise, students’ opinions about free speech, free markets,
open access to the Internet, and the value of non-tangible goods will all impact their
recommended solutions.
Building Effective Interpersonal Skills

I. Purpose
This exercise is designed to help students develop their interpersonal skills through the analysis of a
realistic ethical dilemma.
II. Format
This exercise is designed so that it can be done individually or in small groups, either inside or
outside of class. This exercise should take between 10 and 15 minutes to complete.
III. Follow-up
A. Jot down some general notes for your conversation with the male employee.
Answers will vary, but students should consider pointing out to the man how his behavior
affects others and to try to explain why offensive remarks cannot be tolerated. It may help to
draw upon the ethical principle of fairness, to show that it is not acceptable to single out one
group of people in an insulting way. In order to reduce tensions, it may also help to assure the
man that this incident can be “put behind them,” and that the company will forgive and forget
if the incidents don’t continue.
B. Jot down some general notes for your conversation with the female employee.
Students will probably mention the need to reassure the woman that she did the right thing by
reporting the problem and to assure her that the organization regrets the incident and will work
to ensure it doesn’t happen again.
C. Make sure that you have a handle on the ethical issues in this situation. Precisely what are they?
On one side, the woman deserves a workplace that is free of harassment and insensitivity. This is
an issue that draws together rights, justice, and caring. If the company ignores the harassing
behavior, they may be legally liable if any lawsuits result, and that would not be optimal for the
firm, which raises issues of utility. On the other side, in fairness (justice), the man deserves one
more chance. Now that he has been warned of the serious consequences, if he again chooses the
inappropriate behavior, the firm would finally have no choice but to terminate him.
D. Consider the options of having the two employees work closely together or keeping them
separated. Which will you choose? Why?
Students will probably see both sides of this issue. In the short run, separation might reduce
tension. However, in the long run, separation isn’t an effective (or legal) solution for most
companies. Continued separation may result in attitudes that are even more at odds. Optimally,
the firm would like to educate all of its workers, both men and women, about inappropriate
behavior and its consequences so that the problem is stopped.
SKILL-BUILDING PERSONAL ASSESSMENT

I. Purpose
This exercise assists students in developing a self-awareness of how they view issue of
corporate social responsibility. Are they obstructionist, defensive, accommodative, or
proactive?
II. Format
This exercise may be completed in-class or outside of class and should require 5-10 minutes
to complete. Students select three statements (from twelve) which best reflect their feelings
and beliefs about corporate social responsibility.
III. Follow-up
Statements chosen by the students should fall into one of four groups, or corporate stances.
Three of the twelve statements represent each stance. Students may not choose all three of
the statements within one stance but should have at least two within a single category.
MANAGEMENT AT WORK
All the News That’s Fit to Repeat

This case examines inaccurate media coverage by the New York Post and online media after the Boston
Marathon bombings in 2013. Inaccurate coverage extended from social media to legitimate news
coverage. Reddit members named two inaccurate suspects by name and the Post ran a front-page picture
of two men who were not suspects. Erroneous reporting is nothing new but the use of social media means
the inaccurate news get around faster than possible at any time in the past.
1. Case Question 1: Since 1897, the motto “All the News That’s Fit to Print” has appeared on the
front page of the New York Times. It was coined by new owner-publisher Adolph Ochs to
distinguish his newspaper from its more sensationalistic competitors. What makes news “fit to
print” in today’s news media? In your opinion, is there any category of contemporary news
reporting that tends to encourage unethical journalistic behavior? Give at least one example of a
story that fits into your category.
The case mentions how someone asked the governor of Massachusetts to confirm a “report” which
was actually a Twitter posting from a radio host. With the rise of social media, anything posted may
eventually become ‘news’. If a posting goes ‘viral’, news sources could pick it up as a story.
Students could provide various examples of unethical journalistic behavior targets. The most
common seem to be celebrities and sports figures. One possible example is the ESPN reporter
asking teammates of the first openly gay NFL player about the after-game showering arrangements.
ESPN later issued an apology.
2. Case Question 2: According to writing specialist Roy Peter Clark, “Immediacy is a value, and it’s
a positive value. And verification is a positive value. However, the two don’t always go together.”
Clark suggests an ethical conundrum – a problem that doesn’t necessarily have a satisfactory
solution. Explain Clark’s conundrum in your own words. How, for example, do you interpret the
phrase “don’t always go together”? How might this conundrum lead to specifically ethical
uncertainty on the part of the news reporter? Give at least one example of a newsworthy event in
which the conflict between immediacy and verification might lead to a legitimate ethical conundrum
for a news reporter.
Student’s opinions will vary but one possible opinion is it takes time to verify a story and the
reporter may feel they will miss the opportunity of being ‘first’ to deliver the news if they verify
every fact. The reporter may suffer from ethical uncertainty over specific unverified details if they
run the story early in order to be ‘first’. A bomb treat could serve as an example of a legitimate
ethical conundrum. If not taken seriously and the story proves accurate, many people could be hurt.
3. Case Question 3: According to one critic, the New York Post’s coverage of the Marathon bombing
added to “a long history of not exactly getting things right” and confirmed its reputation as “a ‘print-
first-ask-questions-later’ tabloid.” In what sense does this criticism suggest problems not only in
ethics, but in social responsibility as well? Specifically, in which areas of social responsibility can
the Post be criticized for failing in its obligations to constituents?
News reporting should report the news. News services’ social responsibility to the general public is
to get the facts correct before delivering false information. The general social welfare depends on
accurate news coverage. When the Post ran a front-page story showing two innocent members of
the crowd, they were advancing stereotypes and invading privacy. False reporting also harms the
organization’s stakeholders, more specifically stockholders if continued false reporting harms the
organization’s stock price.
4. Case Question 4: The New York Post was not the only journalistic organization to be criticized for
its coverage of the Marathon bombing. CNN’s John King, for example, had repeatedly told
viewers that a “dark-skinned male” was being sought by authorities. A fellow journalist criticized
King for his description: “Just explain to me what news value exists in the adjective ‘dark-
skinned.’ What exactly is newsworthy that is communicated in that phrase?” Does this criticism
indicate any ethical lapse on King’s part, or just poor journalistic judgment? Should King’s
description even be regarded as a matter of poor journalistic judgment? If you were King, how
would you reply to this criticism?
Student’s opinions will vary. This could be considered an ethical lapse if King has a history of
using similar adjectives in his personal life. It could be that King was merely mimicking verbiage
used in reports provided him by other sources. If that were the case, students may consider this
poor journalistic judgment. Some students may not consider the comments as unethical or poor
journalistic judgment. On King’s part replying to the criticism could cause more damage than if he
said nothing. King could offer a sincere apology if he wishes to fend off further negative criticism.

Responding To The Ethical and Social Environment: Chapter Summary

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CHAPTER 4

Responding to the Ethical and Social

I. INDIVIDUAL ETHICS IN ORGANIZATIONS

II. EMERGING ETHICAL ISSUES IN ORGANIZATIONS

B. Ethical Issues in Corporate Governance

III. SOCIAL RESPONSIBILITY AND ORGANIZATIONS

Extra Example: Organizations with significant commitment to the natural environment

B. Arguments For and Against Social Responsibility

IV. THE GOVERNMENT AND SOCIAL RESPONSIBILITY

A. How Government Influences Organizations

V. MANAGING SOCIAL RESPONSIBILITY

A. Formal Organizational Dimensions

Discussion Starter: Solicit student opinions regarding whistle-blowing. In particular, ask

END OF CHAPTER QUESTIONS

Questions for Review

Questions for Analysis

Questions for Application

END OF CHAPTER EXERCISES

Building Effective Diagnostic and Decision-Making Skills

Building Effective Interpersonal Skills

SKILL-BUILDING PERSONAL ASSESSMENT

All the News That’s Fit to Repeat

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